In a pioneering development for the global shipping industry, the Global Shipping Business Network (GSBN) has welcomed two major players, COSCO SHIPPING Energy Transportation Co., Ltd (“COSCO Energy”) and COSCO SHIPPING Bulk CO., Ltd (“COSCO Bulk”), into its fold. Together, they have successfully ushered in a new era by issuing the first electronic bills of lading (eBL) for energy and bulk shipments. This milestone signifies a significant leap toward digital transformation and enhanced security in maritime trade. The ajot source.
- GSBN achieves a milestone as COSCO Energy and COSCO Bulk issue the first electronic bills of lading (eBL) for energy and bulk shipments, enhancing security and efficiency in the shipping industry.
- COSCO Energy and COSCO Bulk’s membership in GSBN signals a significant move toward digitization and secure title transfer, replacing the reliance on letters of indemnity (LOIs).
- The adoption of blockchain-based eBLs not only empowers trade finance services but also aligns with ESG practices, offering authenticity, security, and sustainability benefits to the industry.
Digitizing Global Trade with GSBN
Global Shipping Business Network (GSBN), a neutral and not-for-profit consortium, continues to make strides in its mission to enhance global trade through digital transformation. In a significant development, two major players in the shipping industry, COSCO SHIPPING Energy Transportation Co., Ltd (“COSCO Energy”) and COSCO SHIPPING Bulk CO., Ltd (“COSCO Bulk”), have joined GSBN as members. Together, they have successfully issued the first electronic bills of lading (eBL) for energy transportation and bulk shipments.
COSCO Energy’s and COSCO Bulk’s Impressive Credentials
COSCO Energy is a distinguished company specializing in energy shipment, including oil and natural gas. Its impressive tanker fleet, the world’s largest by capacity, comprises 155 tankers with a remarkable 22.74 million DWT. Additionally, the company is making significant investments in a Liquefied Natural Gas-powered fleet, with 73 vessels boasting a capacity of 12.42 million cubic meters. On the other hand, COSCO Bulk stands as the world’s largest professional bulk shipping corporation, with over 400 various types of bulk carriers and nearly 40 million DWT, handling diverse cargos like iron ore, coal, and grain.
Transforming Traditional Processes for Enhanced Security
Traditionally, bulk and energy shipments have heavily relied on letters of indemnity (LOIs) as proof of shipment ownership when original bills of lading were absent. However, the use of LOIs has been fraught with risk, with cases of misdelivery not uncommon. In 2022, the Miracle Hope case, involving a US$80 million claim, underscored the importance of secure discharge without LOIs. With integration into GSBN’s blockchain infrastructure through IQAX’s eBL application, COSCO Bulk and COSCO Energy have adopted the platform to connect with stakeholders across the value chain, significantly enhancing title transfer security with immutable records.
Empowering Trade Finance and Embracing ESG Practices
The extension of eBL coverage to encompass all cargo types is expected to empower banks to offer a wider range of trade finance services to the industry. Both COSCO Energy and COSCO Bulk see the adoption of blockchain-based eBLs as a crucial step in improving efficiency, reducing logistics costs, mitigating commercial risks, ensuring authenticity and security of bills of lading, and aligning with ESG (Environmental, Social, and Governance) practices.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!